Loading...
HomeMy WebLinkAboutRM 05-16-80May 16, 1 80 10:00 A.M Presiding Officer: 1. ROLL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. F. Jay Nimtz, President 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN. 46601 Members Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Ms. Paula N. Auburn, Member Legal Counsel: Mr. Daniel Pfeifer Redevelopment Staff: Mr. Carl Ellison, Executive Director Mrs. Ann Kolata, Deputy Director Mr. Kevin Horton, Real Estate Officer Ms. Ann Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist Mr. Paul Falduto, Employment Targeting Assistant Mrs. Jane Zimmerman, Executive Secretary Mrs. Hedy Robinson, Secretary Comuiity Development Staff: Mrs. Kathryn Baumgartner, Director, Bureau of Housing Mr. Thane Wilson, Bureau of Housing Ms. Mary Richmond, Bureau of Housing Ms. Judith Walton, Bureau of Housing News edia: Ms. Jeanne Derbeck, Reporter, South Bend Tribune Mr. Dave Anderson, Reporter, WNDU Mr. Scott Brink, Photographer, WNDU Mr. Larry Ford, Reporter, WSJV Mr. John Winey, Photographer, WSJ` Guest : Mrs. Janet Allen Ms. Glenda Rae Hernandez, President, S.E. PAC 2. APPRO AL OF MINUTES On mo ion by Mr. Robinson, seconded by MINUTES OF THE Mr. ]Donaldson, and unanimously carried, REGULAR MEETING OF the 14inutes of the Regular Meeting of MAY 21, 1980 APPROVED Frida , May 2, 1980 were approved. South BeO Redevelopment Commission Regular eting - May 16, 1980 3. APPROVAL OF CLAIMS On motion by Mr. Donaldson, seconded by Ms. A burn and unanimously carried, the claims totalling - $72,174.54 were allowed and ordered to be paid. The authorized claims are: REVOLVING FUND Payroll: 4 -19 -80 to 5 -02 -80 Business Systems, Inc. Emery Air Freight Os co Drug Radecki Galleries, Inc. Smith Petroleum, Inc. Coffe Time Services Urban Concerns Magazine TOTAL P.E.AJ - EAST BANK AREA Larry E. Vanosdo1, L. S. TOTAL P.E.AJ - IND. R -66 Allie Construction Company Kevin J. Butler, Attorney Kevin J. Butler, Attorney Business Systems Indiana & Michigan Electric Co. Seifer Safe $ Lock Service Robert Stephan, Attorney Edith Hawley d /b /a Jefferson Book Store Edith Hawley d /b /a Jefferson Book Store TOTAL 0 Aphro ite & Anna Pappas & Statewide Construction, Inc. Plaia Construction Co. & Beverly Fisette Ernest Garza & Jurtin's Construction E $ 5,476.15 22.52 15.00 13.09 68.70 81.77 26.55 13.00 $ 5,716.88 $16,011.00 $16,011.00 $ 603.60 1,191.92 400.00 5,726.00 22.94 28.00 1,061.38 3,381.00 12,329.02 $24,743.86 $ 3,460.00 4,250.80 80.00 CLAIMS APPROVED South Beno Redevelopment Commission Regular M eting May 16, 1980 3. 4. APPR AL OF CLAINS 312 LOANS (continued) Roberto & Soledad Duron & Kissell Company T. Brooks Brademas B & B Plumbing R.E. Carlton Plumbing & Heating $ Jeanne Frisz Tri-State Home Improvement Inc. $ Paul Hayden TOTAL GRAND TOTAL [I CATIONS There were no communications presented to the Commi sion. 5. OLD BUSINESS There was no old business to present to the Commission. 6. NEW BUSINESS a. Commission approval requested for a loan application for the tollowing: 1e Amount Loan No. $12,100.00 760.65 60.00 1,541.35 3,450.00 $25,702.80 $72,174.54 Jime Graham $14,950.00 18 /SOU- 1/114/80 920 N. Brookfield Joseph Pluta $ 2,656.00 18 /SOU- 1/115/80 1709 Sibley Mrs. Baumgartner: There is nothing significant on either one of these loans. Basically they are both homestead properties. Joseph Pluta asked for a small amount. He is a City employee and we received the required waiver from HUD. June Graham asked for a total of $14,950.00 for improvements on her home. M . Nimtz: Any questions concerning these 1 ans? 3 NO COMMUNICATIONS PRESENTED NO OLD BUSINESS WAS PRESENTED South Ben4 Redevelopment Commission Regular Meting - May 16, 1980 6. NEW BUSINESS a. c6ntinued.... M Ellison: Mrs, Baumgartner, will the B r eau of Housing be presenting more 312 1 Ians to the Commission in the near future? . Baumgartner: Yes, we will. . Nimtz: Your embargo is off. Isn't at right? ..Baumgartner: Yes, we are on our way. had a meeting with contractors on slay so we feel we have the ball rolling. W. Donaldson made a motion to approve a 312 loan to Ms. June Graham of 920 N. Brookfield in the amount of $14,950.00, d to Mr. Joseph Pluta of 1709 Sibley in e amount of $2,656.00, seconded by Auburn, and the motion was unanimously b. C2�nission approval requested of Land Disposition. Plan. for IND.-R-57, LaSalle MT. Ellison: Included in your packets is Item #6b which is a disposition plan for LaSalle Park. We have tried to summarize b iefly the background on LaSalle Park d the activities involved there. WE have also displayed a map here on the board which will help explain the dis- position plan. As a matter of perspective, e department purchased two hundred sixty t ree (263) parcels of land within the LaSalle Park area. When we closed out the pioject in 1977 we still owned one hundred ninety nine (199) parcels. Since that time we have sold seventy four (74) of the parcels with one hundred twenty five (125) parcels re- ining. It has been our experience that handling the land creates a number of difficulties. One of the difficulties is that we don't have the capacity to effectively manage the vacant property, s rodent control, weed control, and s' filar problems have confronted us. 4 312 LOANS APPROVED FOR JUNE GRAHAM AND JOSEPH PLUTA South Beno Redevelopment Commission Regular A eting - May 16, 1980 6. NEW b. Mr. Ellison continues... Secondly, we have found that there s not historically existed substantial interest in buying the land in LaSalle P rk. Part of the reason is that the area contains a great deal of muck land. us, it is difficult for a typical home Wyer to purchase that land and use it for a building. In addition there has been some lick of interest in buying the land because w have made it available at no charge t residents who wish to garden on it. In any event, because of lack of i terest in buying land, the depart - m nt has undertaken some initiative over the years to dispose of or encourage people to buy it. One m thod we began using four years ago w s to sell land on a time payment b sis. Our experience with time p yments, however, is that these didn't work very well because buyers have not made regular payments or have made payments in nominal ousts. As a result time sales p yment arrangements have typically e tended for a number of years. In a dition, to all of the above, it costs e department more money to sell a lot than the department receives in i come from that lot. Therefore, we concluded late last stumner that there exists a need to figure another method to dispose of the land. The Disposition P an you have before you results from t at effort. The plan calls for using tie approach the City used a year or so ago in disposing of its vacant lot inventory- -that is to sell it for $1.00 per lot. The plan calls for this to be done in three phases. The first p ase is an application period which w uld be open to adjoining owners t department -owned property. An adjoining owner would have first o portunity under the plan to acquire tie parcel next to them. There are s me provisions to take into account situations where there may be two adjoining owners. After going through 5 South Beni. Redevelopment Commission Regular Moeting - May 16, 1980 6. NEW BUSINESS b. Mi. Ellison continues... a process of allowing the adjoining owners to apply for the acquisition of the lots for $1.00, and after we would have agreed to convey specific lots, there would en be a second phase. The second p ase would involve any land in the area t at remained available, and that 1 md would then be available on a competitive basis similar to the plan used for Urban Homesteading -- to anybody who lives within the LaSalle Park boundary area. The rationale for having the second phase limited to LaSalle Park residents is to encourage to the maximun extent possible as much owner participation within the area for all the land. After the first two phases if land remains then there would be a third phase in which land would be made available again for $1:00 per lot to y interested party within the City of South Bend. In each phase an appli- cation process is necessary. An example o the form the department intends to use for this phase is included in your packets. It simply gives us basic information to help us verify that, in fact, an adjoining oimer is an.adjoining owner or that a Salle Park resident is a LaSalle Park resident. We think this plan is relatively simple and should assist the department in getting rid of this land inventory which functions as a burden to the department from the stand point of its economy. Further, the land inventory is a burden to the City as a whole inas- m ch as the 125 parcels, while they remain in the department's hands, are not taxed. ATe estimate that the City loses about $45.00 per year per lot on the average. In order to g t the plan to this point, we have met with e ch person to whom we were selling land on t: E South Beni. Redevelopment Commission Regular eting May 16, 1980 6. NEW BUSINESS b. W. Ellison continues... We gave each person two choices. Me choices were either to agree to a regular payment schedule or quit interest in the land and allow us to recapture total control of it so that we may dispose of it. We have worked out the details with each one of the adjoining owners. Thus, the fact that we have sold land in the past on time sales is not an impediment to the plan. Me second thing we did was have a meeting with the LaSalle District Council and encouraged them to participate by helping us identify and encourage as wtny people from the neighborhood as possible to attend those meetings. During the course of both meetings we axTlained the plan in some detail to low an opportunity for input and l estions from residents. As a result :)f some of their concerns, the plan was n dified in some ways before the 3 oduction of the final version you e before you today. The staff has r ceived a letter from LaSalle Park until indicating general accord with the plan and therefore would not expect y citizen's reactions that would be x verse, if the Commission agrees to A.low us to implement the plan. Finally, we have taken steps in the plan Lo assure that each person who buys land From us understands their obligations and r obligations. We have included at the ck of the document a sample of the land les agreement and in addition to the plan ve have indicated the department's intent lot to, for instance, survey the parcels provide title insurance. In our judgement, 'hose things are not necessary. We want to x int these things out, however, to any rson who wishes to buy land so that they y understand and take appropriate tion if they feel some additional pro - ction is necessary on their part. Finally, vE should point out to the Commission that is disposition method is a little unusual For urban renewal. agencies but is one (based our conversations with HUD) that is acceptable HUD. 7 South Bend Redevelopment Commission Regular eting May 16, 1980 ME "a b. W. Ellison continues... W think the plan is a good one and w think it will lead us to finally g t out of the land ownership business in LaSalle Park. We are optimistic that it can work. We have agreed to keep tie LaSalle Park Neighborhood Council advised of progress so that we might be, able to anticipate and deal with y concerns that they may have as we go along the way. Nimtz: Mr. Ellison, can you give a timeframe for the three phases of s disposition plan? M% Ellison: Yes. If the Commission approves the plan today, the first enrollment phase is slated to take place between June 2nd and June 13th. ere is to be a ten day working period during which an adjoining owner y take application. The reason for the lag between May 16th and June 2nd iE to allow the staff the necessary time tc alert the neighborhood to the plan d to gear up the enrollment process. P ase two would start June 16th and end on June 20th. Notification of the sale or our intent to sell to adjoining pioperty owners would take place between June 16th and June 20th. Between J ly 14th and July 25th we would begin d execute phase two, and the application period would be open during those dates. July 30th we would do the drawing for Phase two. From August 18th to A gust 29th, if a Phase three was necessary, wE would begin and execute that phase. On S ptember 3rd if drawing were necessary to complete that phase we would do it. I might add that there is another provision in the plan which suggests that if there is a lot that someone is gardening on where we have given a person permission t do so and, if someone else as a result o the plan, acquires that lot during t summer months, the plan South Beni. Redevelopment Commission Regular Moeting - May 16, 1980 6. NEW BUSINESS b. . Ellison continues... p ovides that we shall not transfer oimership, or execute the sale of at property until October 1, 1980. M . Nimtz: I am glad the department anticipated that. . Cira: What was the original p ice you were selling these lots for? Mt. Ellison: Basically it was five cents a square foot for buildable land, and tvro cents a square foot for non - buidable Mr. Cira: What does that come out to b0 Mr. Ellison: It averages out to be $200.00 - $300.00 a lot. Mr. Cira: I don't understand why they were not paying their own property taxes. I see we were losing $50.00 or $45.00 per year in taxes. Mr. Ellison: As long as we own the land. Mr. Cira: Alright but you were selling the land weren't you? When someone bought the land outright, they were not going to pick up the taxes? Mr. Ellison: That is correct, when somebody bought it outright. About 25 parcels that People are buying on time until they make the last installment payment we still own it thus it was not taxed. Mr. Nimtz: It is going to get rid of a lot of paper work and headaches, etc. Is t ere anything you would like to mention Mrs. Kolata? Mrs. Kolata: Not really. I think we tried to cover all the questions that people had or might have regarding just what is provided to them in the survey title and 9 South Bend. Redevelopment Commission Regular eting - May 16, 1980 6. NEW BUSINESS b. Mfrs. Kolata continues... are willing to work with the people. didn't put it into the plan, but we ve mentioned to the LaSalle Park Council at we would be willing to go out to their fice one day or one evening during each rollment period so that people would t have to come down here to register. would work that out when the time comes. Cira: Are there any restrictions? . Ellison: They are still restricted the renewal plan. Part of our exercise making sure they understand their sponsibility and we understand ours. will give them a copy and indicate at the restrictions in Urban Renewal an stay in effect until the year 2012. Yond that if they intend to make provements they might want to be sure at they check the plan as well as her city requirements. . Nimtz: Any of the other Commissioners public have any further questions? . Jeanne Derbeck: That apparently is not very desirable for building, what do you see as a long term future for that area? Will it always remain as just vacant lots? Mr. Ellison: That is difficult to say. We have not had substantial evidence of construction out there. There have recently been a couple of houses moved into the area. I frankly don't know what is going to happen tc the vacant land. I think the department's r action at this juncture is to try to do w at is in the public interest, and it is clearly in the public's interest that we discontinue to own large amounts of land. . Derbeck: I see that, but I just wanted know if anything could be done with that . Cira: Is it possible, Mr. Ellison, that meone could haul that muck land out of there J fill dirt in there, and build on the land? 10 South Beni Redevelopment Commission Regular eting - May 16, 1980 6. NEW BtJSINESS b. continued.... Mr. Ellison: It is possible that it could be done for a number of lots, but A is a very expensive proposition. If someone wanted to buy a lot and build a house, typically, the economic of d mucking just won't work. . Cira: An apartment complex rhans? M . Ellison: Well the area is basically single family residential (we own most of the land) and because of the way the land is massed. Multi- family construction, indess additional clearance took place, would be difficult. One of the things we did agree to and ask the Commission to approve by the next item, is a disposition of certain parcels in L Salle Park to the LaSalle Park Council. The coulcil has pursued with the City an idea that a Center be built for the Senior Citizens residing in LaSalle Park for a number of years. There does not exist an adequate facility to meet their needs. There is a recreation center, but it does not contain meeting rooms and other things to accommodate the citizen's interest. The Salle Park Council requested money from Conmunity Development when I was the Director to provide for an addition to the LaSalle Park Center for this program but Community Development turned that request down primarily on the basis that we really didn't think it would work. I felt that the use would simply conflict and would not achieve the objectives o the plan. So, from that time to this time, we have always been interested in pursuing an effort to cause some s rt of center to be built in part to r place the existing ACTION, Inc. Center wftich is located at 2510 Western Avenue, j st outside of the renewal area South o Western. In any event, the LaSalle Park C uncil is still interested in pursuing that d eam and asked us to allow them to, in 11 South Beno Redevelopment Commission Regular eting - May 16, 1980 6. NEW b. W. Ellison continues... 'ect, pre - purchase a parcel of land which the dream can be fulfilled. staff feels that in light of the - cumstances it would not be inap- priate to encourage neighborhood idents to try to see their dream ough. So, we have prepared the t item on the agenda, which is a olution which would approve the veyance of certain parcels to LaSalle Park Council before the n is implemented. . Cira: In other words what you a e saying is that the Council can b any amount of land they want for a $1.00? Nft. Ellison: No. Mr. Cira, the next item on our agenda asks the Commission to authorize the disposition of these parcels of land to the LaSalle Park Council today so that when we implement t e disposition plan this land will no loinger be available. . Cira: How many lots are there? Ellison: There are roughly four o five lots. It is a half a block around a ul -de -sac. Ms. Derbeck: Did you say that there would be a senior citizens center or a community ce ter? Mr. Ellison: Well, they are really interested in a Community Center but the predominant need is to provide a place to service the need of the substantial se for citizen population that exists in th area. There are probably a hundred and tw my (1 20) senior citizens who live in th's area. Mr. Cira: Can any one person buy more than one lot? 12 South Beno Redevelopment Commission Regular Meting - May 16, 1980 6. NEW BOSINESS b. c6ntinued.... Ellison: Yes. There is a two lot Lit but there is some flexibility. If, instance, we found that somebody .ted to purchase five lots and nobody e wanted those lots, then obviuosly would dispose of all the lots to that Ws. Allen: Wouldn't it save a lot of p perwork and staff time if they sell one hundred seventy five (175) lots for a $1.00 a piece? Why couldn't the N ighborhood Council collect $175.00, buy a l the lots, and then take care of them? Ellison: Well, they could, and that s discussed at one of the meetings. But, didn't encourage them to do that cause I think given the problems we ve managing land out there, and we have 11 time staff and they do not, I didn't el that a neighborhood council would ve the capacity we do to dispose of the . Allen: Well, I don't think they would as many problems as you do. . Ellison: Well, I think they would. The her thing, Mrs. Allen, is that they are a n- profit organization. So I wasn't sure could achieve the objective of getting e land back on the tax rolls if the Council stead of individual owners had an oppor- nity to acquire it. I.think the council's eling was that they didn't really want attempt to manage 175 pieces of property. do know that they investigated and are still mewhat interested in the neighborhood rid trust concept, but despite that, they peared to be unprepared to take on the sponsibility. I did note earlier that ey had communicated with us.in writing eir general agreement with the plan. . Allen: What happens to the prices the lots that people have already 13 South Ben4 Redevelopment Commission Regular 11aeting May 16, 1980 b. continued... . Ellison: Well nothing happens. ybody who bought it at our previous price did so presumably because they w ted to own the land. Our situation i3 that while it may seem unfair, given Vie overriding public interest it is n t unreasonable for the department none- t eless to be in a situation where s eone else can buy the same amount oE land for a dollar today. s. Kolata: Mrs. Allen, I might ation that several of the people who were ying on time, and given the option of at the plans were going to be, that rhaps they were an adjoining owner, and at they would be able to get it for .00; they still chose to buy it tright to make sure that they had it, an knowing that we were going to 11 the lots for $1.00. . Ellison: That is right. Over the st couple of months we have done an ful lot of land business out there, obably more than we had in the whole year fore that. We think we have been very it with people in explaining the plan, d the general reactions that we have ceived is that people see it as asonable and logical. We don't expect y resistance or any comments contrary the plan to come forward from the Salle Park Council. They are aware at the Commission is considering this tter today. Robinson: Who is cutting all the ads in the meantime? . Ellison: Hopefully the City will do at. . Nimtz: I don't think we had any nplaints last year. We did two or three ars ago. 14 South Ben4 Redevelopment Commission Regular eting May 16, 1980 6. NEW b. continued... . Ellison: Oh yes. We have asked the ty to do that for us as the Department es not have the capacity or the incli- tion to fund its own weed crew to go out d take care of lots. . Robinson made a motion to approve the rid Disposition Plan for IND. R -57 in Salle Park, seconded by Mr. Donaldson, I the motion was unanimously carried. c. C mmission a. solution #E for e execution +i,- ; � -- stion of land and the execution of qt�it-claa deed (s) for the transfer of title thereto in connection with land to be Ts posed of in the LaSalle Park Project, Tnd. R- 57. Pz rcel Number Name Amount 12-23 thru LaSalle Park District $1.00 12-26 Council, Inc. Donaldson made a motion to approve Resolution #614 authorizing the execution of Redevelopment Agreement for the dis- p sition of land and the execution of. quit-claim deed(s) for the transfer of title thereto in connection with land to be disposed of in the LaSalle Park P oject, Inc. R -57 (Parcels #12 -23 thru 12-26 to the LaSalle Park District Council, I c. in the amount of $1.00), seconded by c . Auburn, and the motion was unanimously rried. d. Commission approval re(Mested for the execution of new leases with the Board of Public Works 4 -30, 4 -28, 4 -29, 4 -3, 4 -80, 8 -9, 8 -11, 9 -1, 9- , & 9-9 15 LAND DISPOSITION PLAN FOR IND. R -57 LASALLE PARK APPROVED RESOLUTION #614 APPROVED FOR SALE OF LAND IN LASALLE PARK PROJECT, IND. R-57 TO THE LASALLE PARK DISTRICT COUNCIL, INC. FOR $1.00 South Bend Redevelopment Commission Regular eting - May 16, 1980 6. NEW BIUSINESS d. cbntinued... s. Kolata: Basically there are four s parate areas of land that the Board oE Public Works has parking on currently. Oar leases with the Board have expired. Farther, in the case of one part of the 1 md on which Office Engineers once s ood, a lease was never executed. The t rms of the leases are $1.00 a year, t irty (30) day cancellation, and the r auirement that the Board of Public Works maintain the lots. The lots that were just read off include' a lot which is on St. Joseph Street next to the parking garage. There are two parcels n xt to Baers and others north of I woods. . Nimtz: Wasn't the License Bureau ing one of those parcels? . Kolata: Yes, through an arrange - .t with the Board of Public Works. order to get things straightened we should have a lease with the rd of Public Works. M . Nimtz: You are requesting that the C Mission approve a lease for these 1 is to the Board of Public Works i that correct? . Kolata: Yes that is correct. Nimtz: They will resume responsi- ity and run them? . Kolata: Correct. They are presently rating them as parking lots, but � are not under a lease arrangement. . Nimtz: This then is actually a renewal the lease? . Kolata: Yes. 16 South Ben4 Redevelopment Commission Regular M eting May 16, 1980 6. NEW BIAS INESS d. cdntinued... . Robinson made a motion to approve e execution of a new lease between e Department of Redevelopment and the and of Public Works for parcels mbered 4 -30, 4 -28, 4 -29, 4 -3, 4 -80, 9, 8 -11, 9 -1, 9 -8, and 9 -9, seconded Mr. Donaldson, and the motion was animously carried. e. C mmission approval requested to authorize The Executive Director to execute a con - t act for ro essional services wit Baird Warner, Inc. in connection with the Cntury Mall Project. Mr. Ellison: Gentlemen, I am not sure I would like to pursue this matter today, birt I will discuss it in part, then the Commission can determine what the appropri- ate action will be. Included in you packet is a draft of a contract with Baird & Warner, Inc. that Mr. Butler and I have discussed, but because of the events of yesterday, and M% Butler's time, we were unable to arrive at any decisions with respect to language. I think I want to explain nonetheless the purpose of the contract and to indicate i s anticipated cost and its relationship to the Century Mall Project. I might add that there is a more recent draft of tie proposed contract which is a little e sier to rean than the one that you have. Mr. Nimtz: Baird & Warner is a very pro- fessional real estate firm in Chicago. I h vent had any contact with them for a ninber of years, but when Edison Park Housing Project was in difficulty at the end of the war they came in and assisted Bill Ogden a.id the Edison Park Board in getting that in shape along with the National Bank. I have had spasmodic contact with them through the years. I think they are mainly b sed in Chicago and Detroit; is that c rrect Mr. Ellison? . Ellison: Yes. 17 COMMISSION AP- PROVAL GRANTED FOR LEASE AGREEMENT BETWEEN THE DEPT. OF REDEVELOPMENT AND THE BOARD OF PUBLIC WORKS FOR PARCEL NUMBERS 4 -30, 4 -28, 4 -29, 4 -3, 4 -80, 8 -9, 8 -11, 9 -1, 9 -8, AND 9 -9 South Beni. Redevelopment Commission Regular Moeting - May 16, 1980 6. NEW BUSINESS e. cQntinuect... Nimtz: They manage mortgages or anything relating to real estate. As far as I know their reputation is excellent, but I hven't had any contact with them, I would say for 0 or three years. . Ellison: By way of explanation, before we get into contract details, it is appropriate to put into perspective why ere is a need for a so- called leasing agent. This need results from a simple f ct of life, that we are at a point in the Century Mall where in order to continue to package the development, there are certain needs that the public sector has. Within the history of the project we have been involved in an arrangement with the St. Joseph Bank and Trust Company where we hired Rouse Corporation to do a market study and to provide us with a concept plan for the Mall. That study helped to define what the market will bear. Pursuant to Rouse's report the Commission then entered into an agree- ment with Gruen & Associates to take use's concept plan and to begin to translate that into architectural concepts. Also Gruen's work helped tc facilitate the process of discussing the project with all the other private sector actors who are involved in it. The actors, of course, include the St. Joseph Bank and Trust Company, the investor group associated with the mall itself, the General Services Adminis- t ation, etc. Pursuant to the completion of Gruen's work, which we then shared with the public in December of last year, we have spent several months beginning the process Df refining some of the information that Gruen provided to us. It became very clear before last December and c rtainly more clear since the first 18 South Beni Redevelopment Commission Regular Meeting - May 16, 1980 6. NEW BUSINESS e. W. Ellison continues... of the year that the public sector, the Commission, the Mayor's Office, and the City in general is in the position to act as the master developer of the Century Mall Project. W thin that context it is important aid appropriate that the public sector have the resources to understand a 1 the economics that are involved. Secondly, it is important for us to provide a certain amount of leader- ship to push the deal along. Cities historically are not experts in retail. We do not really understand the nickels d dimes of retail econimics nor do we really understand fully the details of a rracting certain types of retailers d appropriate retail mixtures. About a month or so ago we undertook some discussions with a number of retail leasing consultants. As a result of that some discussions took place with four firms of which Baird & Warner was one. Some background checking was done on each of the firms to try to determine to what extent they had been involved in downtown before d to what extent they they had been involved in unique retailing situations; situations that are not of the standard shopping center chain store variety. Based on that process Baird & Warner emerged as the best party to enter into this arrangement. The arrangement calls for Baird & Warner to review existing studies and other data that is available and includes primarily the Rouse study and certain o her information that is requested. eir objective is not to redo the Rouse study, but rather to reverify it. I should point out that this effort of the leasing consultant provides certain expert advice which could have been provided by R Intemplated use and in fact it might have been c in the beginning. 19 South Ben Redevelopment Commission Regular eting - May 16, 1980 6. NEW BUSINESS e. Mir. Ellison continues... ey are going to look at Gruen's a chitectual design and provide some a vice to the City as to whether in t eir opinion, as professionals, the space that is designed is actually leasable. This becomes very impor- t int because we have already discovered in our process with working with Gruen Mat there are a number of questions and substantial diversity of opinion with respect to what will work on the second floor from the stand point of retail. ey will evaluate the extent to which ere might exist local entreprenuers who can in fact become tenants in the Mall d whether the economics would generally work for local retail tenants. It will also assist us in developing specific standards that are more detail in the concept plan with respect to the quality of that retail space. The contract is for a six month period beginning June 1, running until the end of the year. Their compensation for this would be $3,500.00 per month plus some reimbursements which are fairly standard. The minimum fee they would receive is $10,000. Based on our discussions with them, we are cognizant that if they begin J e 1, within an eight week period they will generate enough information where they can tell us in their o inion whether or not this project as we can see to this point will work. We will then have an opportunity to react. In any event, I think that the company w'll 'do at least $10,000 worth of work der any circumstances, so I would not let the minimum fee consideration be an impediment to its approval. One final thing, within this process one off our interests clearly is to try to h 1p Baird & Warner do an objective study, and also to try to make sure 20 South Ben Redevelopment Commission Regular eting - May 16, 1980 6. NEW B SINESS e. Mr. Ellison continues... t ey are sensitive to what we have done as a community in the past and what we care to do in the future. If it should turn out that there are pieces of a project for which there a e no developers, it is our intent t try to encourage Baird F Warner to aft as developers. They have done tiat in a number of situations around tie country. . Nimtz: Has this been discussed w th the Mayor and has his approval, as well as St. Joseph Bank? . Ellison: Yes, it has. Nimtz: Mr. Ellison, you say there is no urgency that we approve e contract today, is that correct? . Ellison: That is correct. Mrs. Allen: I was just wondering, assuming since you have had professionals all the way down the line, do you have a p ofessional line up to review Baird $ Warner's proposition? Mr. Nimtz: I am going to review it. s. Allen: Everytime you get a professional Pidgement you call in someone else to review it, and I wondered if Baird and Warner is going to be the final one? When you get their review, are you going to call in someone else to review theirs? lvh-. Ellison: Mrs. Allen, it is not that we are duplicating effort. What we are r ally doing is refining the effort. It is one thing to have a concept and another thing to build a project. We are somewhere b tween a concept and project. rvb-s. Allen: You keep reviewing and reviewing. M ' Ellison: That may be, but the reality o the development is that you deal with w atever the reality is at a point in time. 21 South B, Regular 6. NEW e. 7. Redevelopment Commission ting - May 16, 1980 INESS ttinued... T,ie Chair announced that this item ( ontract between Baird & Warner for professional services for the Department oF Redevelopment, City of South Bend) b placed on the agenda at the next r gularly scheduled South Bend Redevelop - m nt Commission Meeting, pending further vestigation by the Redevelopment staff d Commissioners. REPORTS Interfim Leases in Century Mall Proiect Mrs. olata: By telephone approval the Commission has approved a lease for W. Garret who wishes to lease Parcel #9 -21 known as the "wig shop" for $1.00 to operate some sort of eating establishment. At one point we understood he was opening up a estaurant, and at another we understood it to be an Ice Cream Parlor; so I am uncertain just idiat type of eating establishment he is referring to. We would like to have a reconfirmation on this lease. Mr. Donaldson made a motion to approve a lease agreement between the Department of Redevelopment and Mr. Garret to lease Parcel #9 -21 ( "wig shop ") for $1.00 per month seconded by Mr. Cira, and the motion was animously carried. Mrs. olata: Commissioner Robinson has given us a telephone approval on our next lease but we were unable to contact the other commissioners. A company known as Michiana. Salt Company, Inc. wishes to lease Parce #9 -25 (Lerner's Shop) for a coffee shop qating establishment. W. H rton: I might add that contrary to the o her eating establishment, this coffee shop is going to be open during the hours of 5 c1clock in the evening until 10 p.m. 22 COMMISSION APPROVAL FOR CONTRACT WITH BAIRD & WARNER FOR PROFESSIONAL SERVICES FOR DEPT. OF REDEVELOPMENT DELAYED PENDING FURTHER INVES- TIGATION BY STAFF AND C044ISSIONERS COMMISSION APPROVAL GRANTED FOR A LEASE AGREEMENT BETWEEN DEPARTMENT OF REDEVELOPMENT AND M. GARRET TO LEASE PARCEL #9 -21 FOR $1.00 PER MONTH South Ben4 Redevelopment Commission Regular eting - May 16, 1980 7. PROGRESS REPORTS (continued) Mr. Horton continues.. The c mpany is going to have live entertainment so people may sit down and relax. W. Donaldson: Are they going to sell ything other than coffee? Mr. Horton: No. Mr. N tz: Are they going to sell any food? Mr. Horton: Not any heavy type cooking. They might sell sandwiches. Ms. rbeck: Do they have to get approval from the Board of Health? Mr. Ellison: I don't see how they can afford to operate this business. Mr. N tz: We have mentioned this a few times. We have interest of food establishments arriving in town and we have had a few concerns. It takes money to have hot water a certain degree, a three compartment sink, etc. Mr. Donaldson: With the three compart- ment sink it is not necessary to have the maximiun hot degree. Mr. Ellison: Between fixtures, equipment, and repairs, it becomes necessary to obtain a health permit. I don't see how on earth they dould do it and make money. Mrs. olata: Especially on a short -term lease. Mr. N' tz: What is the street address on this? Mrs. olata: This is Parcel #9 -25, the Lerne 's Shop. We have not had approval on this ease, we therefore request your approval. 23 South Bed Redevelopment Commission Regular Meeting - May 16, 1980 7. PROGRESS REPORTS Mr. Donaldson made a motion to approve a lease agreement between the Depart- ment of Redevelopment and Michiana Salt Company, Inc. to lease Parcel #9 -25 (Lerners) for $1.00 per month, seco ed by W. Robinson and the motion was animously carried. FLOOR DISICUSSIONS Mrs. len: Aren't you even going to menti n the Odd Fellows Building on what you a e doing presently? Mr. N' tz: I wish I could tell you how many hours Mr. Butler, the redevelopment staff and I have spent studying the Odd Fellows Building. Mrs. len: It would be nice if some of us kn w what was going on. Mr. N mtz: I have said before when you are dealing with these people they do not want their affairs made public, and we respect their request. If they would like to reveal their affairs that is up to them. We have been talking to all three of the other proposals concerning this matter and if they would like to reveal anything that is up to them. The attitude of the Commission is that anybody who wants to start, at least at this juncture is going to have to.comply with HUD regulations when ive finally get down to signing a contr t. I have told the Mayor and the staff as far as the Commission is co cerned there is no way of waiving these HUD regulations unless HUD waives them. Is that correct Mr. Ellison? Mr. Ellison: Mrs. Allen, we entered into a 30 -day exclusive negotiation period, and after that period, the Commission agreed to express its intent to convey subject to details being worked out. 24 COMMISSION APPROVAL GRANTED FOR A LEASE AGREEMENT BETWEEN DEPARTMENT OF REDEVELOPMENT AND MICHIANA SALT COMPANY, INC. TO LEASE PARCEL #9 -25 FOR $1.00 PER MONTH DISCUSSIONS CONCERNING OUTCOME OF ODD FELLOWS BUILDING South Bend Redevelopment Commission Regular eting - May 16, 1980 FLOOR DISCUSSION (continued) Mr. Ellison continues... We ar� working under HUD guidelines right now. Ms. rbeck: If you do hire Baird & Warier, would you like to have them look it the Odd Fellows situation also? Mr. C�ra: I think we have spent enough money on it. Mr. Ellison: I don't see any particular need for that. We have had some expert counsel from Nicholas C. Jannotta from the standpoint of building economics and I think we now have all the information we need. Ms. D rbeck: Will they be doing a study of th Odd Fellows Building? Ms. Ellison: That is possible, but they are not specifically directed to look at the Odd Fellows Building. But, if they do happen to do that in their process, it would be alright. I am uncertain if they will 6r not. Ms. rbeck: Would you anticipate having an answer on the Odd Fellows Building by your next meeting? Mr. Ellison: There can be no assurance. The interesting thing about economic development is that it does not necessarily march in time. It simply marches to its own drummer. Therefore, I can t give you a definite yes or no answe . 8. NEXT The held ION MEETING regularly scheduled South Bend pment Commission Meeting will be June 6, 1980, at 10:00 A.M. 25 NEXT COMMISSION MEETING South B Regular 91 The r befo a mo was adj Redevelopment Commission ting - May 16, 1980 being no further business to come e the Commission, Ms. Auburn made ion that the meeting be adjourned, fled by Mr. Donaldson, and the motion nanimously carried. The meeting was irned at 11:00 A.M. 26 l 2�- 1 Carl Ellison, Executive Director